Customer Service Chat
Get quote & make Payment
Investment allowance, Finance, Other Engineering
Until a few years ago, a company could charge an amount equal to 25 per cent of the original value of an asset as investment allowance in the period in which it was installed for production, and thus, it provided tax shield equal to investment allowance was to encourage investment in fixed assets by the corporate sector. The government withdrew investment allowance form April 1987. It was however reintroduced only in case of the high tech industries in 1988. The rate was 20 per cent. It has also been withdrawn now.
Investment deposit scheme
The government introduced the investment deposit scheme when the investment allowance scheme was withdrawn in 1987. Under this scheme as firm could deposit up to 20 per cent of the profits (before the set off of any unabsorbed business losses of earlier years) with the industrial development bank of India. For this the firm would be entitled to a deduction equal to the amount of deposit and or any new plant and machinery. The scheme has also been withdrawn now.
Other tax incentives
There are number of other tax and non-tax incentives available to a firm when it undertakes a new investment project.
The sales tax deferral is also available to a unit set up in a specific backward area. Sales tax equal to 4 per cent of gross sales collected from customers in allowed to be retained, free of interest, for a period of 7 years. This, the sales tax collected during a year needs to the remitted to the state government only in the 8th year. This concession is available for a period of 6 years from commercial production.
Posted Date: 1/31/2012 11:56:28 PM | Location : United States
Ask an Expert
Investment allowance, Finance, Assignment Help, Ask Question on Investment allowance, Finance, Get Answer, Expert's Help, Investment allowance, Finance Discussions
Write discussion on Investment allowance, Finance
Your posts are moderated
Write your message here..
Capital budgeting decisions, Capital Budgeting Decisions The most important...
Capital Budgeting Decisions The most important function of a finance manager is the efficient allocation of its capital. The investment decision of a firm is termed as capital budg
Jfet characteristics with external bias, Explain the drain characteristics ...
Explain the drain characteristics of JFET with external bias
Classifications of moulding sands, 1. Generally moulding sands can be class...
1. Generally moulding sands can be classified as: (a) Natural Sand (b) Synthetic or High Silica Sand (c) Chemically Coated Sand
Oscilloscope probes, Direct probe,isolation probe,high impedence probe,acti...
Direct probe,isolation probe,high impedence probe,active probe,current probe
Architecture.., draw folded plate roof structure on multi purpose hall?
draw folded plate roof structure on multi purpose hall?
Processor, explain processor
Furniture of space, can you ask me what is in space
can you ask me what is in space
Linear integrated circuit, ac analysis for dual input unbalanced output dif...
ac analysis for dual input unbalanced output differntial amplifier
Explain critical path method and idea, Problem 1 Case Study - Developme...
Problem 1 Case Study - Development of a new sewage secondary treatment plant Context and location: Consideration is being given to the development of a new major sewage seco
Parmpreet, Hi, i want to get a quote for my communication networks assignme...
Hi, i want to get a quote for my communication networks assignment
Accounting Assignment Help
Economics Assignment Help
Finance Assignment Help
Statistics Assignment Help
Physics Assignment Help
Chemistry Assignment Help
Math Assignment Help
Biology Assignment Help
English Assignment Help
Management Assignment Help
Engineering Assignment Help
Programming Assignment Help
Computer Science Assignment Help
Why Us ?
~24x7 hrs Support
~Quality of Work
~Time on Delivery
~Privacy of Work
Human Resource Management
Literature Review Writing Help
Follow Us |
T & C
Copyright by ExpertsMind IT Educational Pvt. Ltd.